Two-year note yields have risen 58 percent this year in their largest increase since 2014 to 1.90 percent, according to Reuters. The newswire also said the yield curve between two-year and 10-year notes fell to 50 basis points on Wednesday, the flattest level since Oct. 2007.

Trading volumes have been light this week. The market has been focused mostly on $88 billion in new short and intermediate-dated supply, which was sold to mostly below average demand.

"Next week will be very busy," analysts at NatWest Markets wrote in a note on Friday. "There is a ton of top tier data out as well as the potential for political news if Trump kicks the year off with a strong drive for infrastructure spending."

The Federal Reserve has indicated that an additional three increases are likely next year, though interest rate futures traders are pricing in only two. The U.S. central bank will release minutes from its December meeting, when it raised rates for the third time this year, on Wednesday.

An uptick in Treasury supply, which is expected to initially be concentrated in bills and shorter-dated notes, is also a key focus for investors as the U.S. Treasury makes up for declining bond purchases by the Fed.